Innovations rarely happen on their own, usually, there’s a team of professionals behind every new idea that pops up on the market. Every business that wants to stay relevant should consider investing in its own R&D team. What that is and how it can help – you can find out from this article.
What’s an R&D Team?
R&D stands for research and development. It is a team of professionals that provide consulting services to various companies. Such a team can be an in-house one, or you can find an outsourcing R&D service provider, depending on your needs. In the modern business world, if you decide to establish R&D for your business, they can hold responsibility for a long list of tasks, including risk evaluation or building a product promotion. Here are some of the most common tasks these specialists meet in their work:
- Technologies that require integrations;
- Projects that lack previous research;
- New technologies with high potential;
- Newly created approaches and methodologies that are not thoroughly researched and developed yet.
Apart from providing thorough research on the new technologies, R&D teams often work on improving the already existing products at the company.
Main Benefits of Having an R&D Team
More and more companies are starting to consider getting one of these teams for their business. Let’s take a look at some of the most prominent benefits of having such specialists:
- It will make your product unique. To build an R&D team is a great way to improve your products the way that your competitors haven’t thought of yet. It will improve your customer loyalty and will strengthen your position in the market.
- It brings innovation. One of the primary goals of the R&D teams is creating innovative products. If your product doesn’t have any competition on the market, you will be facing huge upsales.
- The possibility of a tax credit. The government often shows its support to companies that invest in research.
- Financial income. Many small companies without a name had made a fortune by selling their potentially good ideas to big corporations that have funds to bring those ideas into reality.
- Improved marketing. The demand for new and more technological products is growing every day. Customers are often looking for innovation simply because it’s something never seen before. It is up to companies to keep up with this arms race and provide the requested products. This is when an R&D team can be very helpful.
- Stronger reputation. An R&D team can be helpful in terms of strengthening your brand. A collaboration with a trustworthy research institution can make you look more appealing in the eyes of customers.
- Cost reduction. The success of the R&D team depends mainly on the talents of the people that make it. Therefore you can have a smaller budget for the R&D department, but if you put enough effort into making talents stay – you’ll get amazing results for a lower cost.
Calculating R&D Costs
When calculating the price of your R&D, you have to carefully review every expenditure made during the corresponding year. The total, however, can be calculated using a simple cost calculation method –estimated time multiplied by rate. When preparing an analysis to present to your director’s board, you should be ready to compare the most expensive option and the most cost-effective one. First of all, it is crucial to estimate the time it would take to develop a new project. During this stage, you should consider the time needed to collect basic data, compile that information into a document or research, and the work itself. Then, the employees’ salary per hour is taken and multiplied by the estimated number of hours for which the work is done. If you outsource any of the R&D tasks to a contractor, you should also add these expenses to the estimate.
Why Your Business Needs an R&D Center
Technologies progress and developing at a breakneck pace. For your business to stay relevant, competitive, and gain an advantage compared to other players in the industry – a well-rounded R&D is as important as a clear strategy. R&D center opens a possibility to build and test new products and services that will be hard to copy. Thus – a competitive advantage. Good R&D strategies allow organizations to nurture marketing campaigns and advertising tactics. Needless to say, that it would open the door for forecasting and meeting the needs of your targeted audience.
A common misunderstanding is that R&D product development is something related to large tech or pharmaceutical enterprises only. However, in reality, even if your company is just starting its journey or you’re in the growth phase – R&D is equally important to your business as it is for more significant players. Of course, competing with Fortune 100 giants in that regard is not the greatest idea one could have. Still, a dedicated, experienced R&D crew is a smart choice at any stage of business development.
Ukraine is a top 10 destination for outsourcing tech development and many top-tier R&D centers. When discussing establishing such an essential business element and the key to beating your competitors, selecting a reliable partner is a task you should approach very responsibly. How can I start the R&D process and boost my results in perspective? In case your job is to build a long-lasting partnership and looking for a cost-effective R&D provider – seek no further. You can find the right talents and A-players here at Mobilunity. We’re proud to be one of the most distinguished research and development partners in Ukraine, managing projects and teams from all over the world. Our carefully selected engineers will be working hard on your projects and initiatives, building and testing a world-class product. Leave all your worries aside – we got you covered on every stage.
R&D is a progressive strategy element and a new perspective that can get your business to the top of your game. Hopefully, after reading this article, you have a better idea of why it’s such an important thing and where to find the right partner.